New Import Watchdog Unleashed: Seven Types of Illegal Imported Goods Targeted

A recent press release issued by the Ministry of Trade (“Ministry”) asserts that an influx of illegally imported goods is threatening the resilience of the country’s domestic industries. In addition to not meeting the required standards (i.e. Indonesian National Standards [Standar Nasional Indonesia/SNI]), these illegal products are also being sold at significantly lower prices than their domestic counterparts. As a result, many textile factories are closing while high numbers of workers are being laid off and state revenue is declining. [1]

In response to these issues, the Minister of Trade (“Minister”) recently established the Task Force for the Supervision of Certain Goods Subject to Import Regulations (“Task Force”) through the issuance of Decree of the Minister No. 932 of 2024 (“Decree 932/2024”). The Task Force is expected to increase the effective supervision of the circulation of certain types of goods subject to import regulations (collectively referred to as “Imported Goods”) that do not comply with the provisions set under Regulation of the Minister No. 36 of 2023 on Import Policy and Provisions, as amended several times, most recently by Regulation No. 8 of 2024 (“Regulation 36/2023”).[2] In specific, the implementation of supervision functions through the Task Force is said to specifically targets importers and/or distributors of illegal Imported Products through ports, instead of small traders or retailers.[3]